Fixed Rate Investment Property Loans - Interest Only in Advance

What is Interest Only in Advance?

  • Interest Only in Advance (IOA)[#] is a repayment option, available only on fixed rate Investment Property Loans (IPLs) allowing customers to prepay between 3 to 12 months of interest up-front.​
  • Customers who prepay 12 months in advance may receive an IOA discount. ​
  • See tables below for current rates and any eligible discounts.

Who can have Interest Only in Advance?

  • Customers with existing Investment Property Loans can switch to an Interest Only in Advance product upon request.
  • Existing Interest Only in Advance customers with fixed rate terms expiring will receive a letter of offer to review their Interest Only in Advance arrangements 4 - 6 weeks prior to fixed rate expiry.
  • New customers can establish an Interest Only in Advance loan through our standard application process.
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Interest Only in Advance (IOA) Interest Rates

The below rates include the 0.20% p.a. discount for Interest Only in Advance

LVR stands for the initial loan-to-value ratio. The interest rates below are for new loans, and won’t change during the life of your loan as the LVR changes.

  • LVR[#]up to 70%: you’ll get an extra 0.10% p.a. discount off our standard interest rate if you’re borrowing less than 70% of our property valuation.
  • LVR[#] above 70% up to 80%: our standard interest rate applies if you're borrowing above 70% and up to 80% of our property valuation.
  • LVR[#] above 80%: an extra 0.30% p.a. will be applied on top of our standard interest rate if you’re borrowing above 80% of our property valuation.
Fixed Rate Term Annual Rate[#] Comparison Rate[#]
1 year standard fixed rate less IOA discount 6.74% 9.25%
LVR up to 70% (Includes discount of 0.10% p.a.) 6.64% 9.15%
LVR above 70% up to 80% (no change to standard rate) 6.74% 9.25%
LVR above 80% (includes margin of 0.30% p.a.) 7.04% 9.55%
2 year standard fixed rate less IOA discount 6.64% 8.99%
LVR up to 70% (Includes discount of 0.10% p.a.) 6.54% 8.89%
LVR above 70% up to 80% (no change to standard rate) 6.64% 8.99%
LVR above 80% (includes margin of 0.30% p.a.) 6.94% 9.29%
3 year standard fixed rate less IOA discount 6.84% 8.83%
LVR up to 70% (Includes discount of 0.10% p.a.) 6.74% 8.73%
LVR above 70% up to 80% (no change to standard rate) 6.84% 8.83%
LVR above 80% (includes margin of 0.30% p.a.) 7.14% 9.13%
4 year standard fixed rate less IOA discount 7.04% 8.74%
LVR up to 70% (Includes discount of 0.10% p.a.) 6.94% 8.63%
LVR above 70% up to 80% (no change to standard rate) 7.04% 8.74%
LVR above 80% (includes margin of 0.30% p.a.) 7.34% 9.04%
5 year standard fixed rate less IOA discount 7.04% 8.59%
LVR up to 70% (Includes discount of 0.10% p.a.) 6.94% 8.49%
LVR above 70% up to 80% (no change to standard rate) 7.04% 8.59%
LVR above 80% (includes margin of 0.30% p.a.) 7.34% 8.89%

Interest Only in Advance Interest Rates Under the Premier Advantage Package[#](PAP)

The below rates include the 0.20% p.a discount for Interest Only in Advance and a further discount of 0.20% for the Premier Advantage Package (PAP).

LVR stands for the initial loan-to-value ratio. The interest rates below are for new loans, and won’t change during the life of your loan as the LVR changes.

LVR[#]up to 70%: you’ll get an extra 0.10% p.a. discount off our standard interest rate if you’re borrowing less than 70% of our property valuation.
LVR[#]above 70% up to 80%: our standard interest rate applies if you're borrowing above 70% and up to 80% of our property valuation.
LVR[#] above 80%: an extra 0.30% p.a. will be applied on top of our standard interest rate if you’re borrowing above 80% of our property valuation.

Fixed Rate Term Annual Rate[#] Comparison Rate[#]
1 year standard fixed rate less IOA and PAP discounts 6.54% 7.07%
LVR up to 70% (Includes further discount of 0.10% p.a.) 6.44% 6.97%
LVR above 70% up to 80% (no change to standard rate) 6.54% 7.07%
LVR above 80% (includes margin of 0.30% p.a.) 6.84% 7.37%
2 year standard fixed rate less IOA and PAP discounts 6.44% 7.05%
LVR up to 70% (Includes further discount of 0.10% p.a.) 6.34% 6.95%
LVR above 70% up to 80% (no change to standard rate) 6.44% 7.05%
LVR above 80% (includes margin of 0.30% p.a.) 6.74% 7.35%
3 year standard fixed rate less IOA and PAP discounts 6.64% 7.11%
LVR up to 70% (Includes further discount of 0.10% p.a.) 6.54% 7.00%
LVR above 70% up to 80% (no change to standard rate) 6.64% 7.11%
LVR above 80% (includes margin of 0.30% p.a.) 6.94% 7.41%
4 year standard fixed rate less IOA and PAP discounts 6.84% 7.19%
LVR up to 70% (Includes further discount of 0.10% p.a.) 6.74% 7.09%
LVR above 70% up to 80% (no change to standard rate) 6.84% 7.19%
LVR above 80% (includes margin of 0.30% p.a.) 7.14% 7.50%
5 year standard fixed rate less IOA and PAP discounts 6.84% 7.22%
LVR up to 70% (Includes further discount of 0.10% p.a.) 6.74% 7.12%
[LVR above 70% up to 80% (no change to standard rate) 6.84% 7.22%
LVR above 80% (includes margin of 0.30% p.a.) 7.14% 7.53%

Note that a discount or margin may apply -  please refer to your loan contract or call 132 558

Below are the Interest Only in Advanced Fixed Rate Home Loan interest rates available to fix or re-fix existing loans.

Interest Only in Advance Interest Rates

The below rates include a 0.20% p.a. discount for Interest Only in Advance (IOA)

Fixed Rate Term Annual Rate[#] Comparison Rate[#]
1 year 6.74% 9.25%
2 year 6.64% 8.99%
3 year 6.84% 8.83%
4 year 7.04% 8.74%
5 year 7.04% 8.59%

Interest Only in Advance Interest Rates Under the Premier Advantage Package[#]

The below rates include the 0.20% p.a discount for Interest Only in Advance and a further discount of 0.20% for the Premier Advantage Package (PAP).

Fixed Rate Term Annual Rate[#] Comparison Rate[#]
1 year 6.54% 7.07%
2 year 6.44% 7.05%
3 year 6.64% 7.11%
4 year 6.84% 7.19%
5 year 6.84% 7.22%

Rates for other loan product types

Sustainable Upgrades home loan

Variable rate Comparison rate[#]
4.49% p.a 4.49% p.a

$4k to $50k loan amount on Principal & Interest repayments. 10-year maximum loan term. One Sustainable Upgrades home or investment loan per property.

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